It has been revealed that annuity rates have fallen by nine percent in the last three months, despite gilt yields remaining unchanged over the same period; and the fall in annuity rates is being put down to customers rushing to beat the introduction of “unisex” rates.
Currently under annuity rates, mane receive better rates than women; however on Friday (December 21st 2012), a new European Union ruling will come into force, which will see rates equalised; and as such, men can expect the income they are offered to fall.
It has been suggested that as customers rush to beat the introduction of the European Union ruling, annuity companies have been able to get away with offering lower rates.
This has seen the figure offered to men with a pension pot of £100,000 fall from roughly £5,880 in September of this year, to less than £5,500 during December – a fall of nine percent.
Along with annuity rates falling ahead of the introduction of the European Union’s ruling, figures have also revealed that in November four men for every one woman applied for annuities; which is double the figures for the same period last year.
For those who are concerned about what impact the EU ruling will have on their annuity income, or for those who wish to discuss their pensions and financial planning for the future, the team at Milsted Langdon are always on hand to offer advice, guidance and support – tailored to your needs, requirements and financial situation.
Milsted Langdon Director, Peter Groves, specialises in strategic business and tax planning, services for high net worth individuals and professionals.